Friday, November 02, 2007

So you think you can putt?

50/50 Puttle Tournament - Winner takes half!

$10 Entry Fee/18 & Older
Unitarian Universalist Church of the Lehigh Valley
424 Center St.
Bethlehem, PA

Saturday 10 am - 2 pm
November 17
December 22
January 19
February 23
March 22
official rules and scorecard of puttle

Contact: Ko Kleppert at 610-504-8031 for more information

Thursday, November 01, 2007

Affordable Housing: Number Crunching

One of you out there asked what the median income is in our area. I'm working on finding out. In the meantime, chew over this post.

Average young professional income:
  • The median income for families headed by people aged 20 to 29 was just under $28,000 in 2004, according to Federal Reserve statistics. Adjusting for 3% inflation each year this may be more like $30,500 now.
  • The median income for families headed by people aged 30-39 was $48,000. Perhaps $52,500 with inflation.
  • One-third of twenty-somethings made $20,000 or less.
Average young professional debt:
  • The average debt load for a bachelor’s degree hovers around $19,000. Additional $31,000 for a grad degree.
  • Americans age 25 to 34 tend to carry a balance of more than $4,000 in credit card debt according to Demos, a research firm in New York.
Average cost of housing:
  • The average cost of an existing home in Lehigh and Northampton counties in September was $217,000 according to statistics from the Lehigh Valley Association of Realtors
Number crunching: Is housing affordable?

The FHA says most people can afford to spend 29% of the annual gross income on housing costs, which include mortgage payments, property taxes and other regular costs.

Annual Gross Income 29% of Gross Income Monthly
20k 5800 583
30k 8700 725
40k 11600 966
50k 14500 1208
60k 17400 1450
70k 20300 1691
80k 23200 1933

Typical mortgage payments for a 30-year fixed-rate mortgage:

Mortgage Amount 6.5% 7% 7.5% 8%
100k 632 668 699 734
150k 948 998 1048 1100
200k 1264 1331 1398 1468
250k 1580 1663 1748 1834
300k 1896 1996 2098 2201

So therefore the average “affordable house” for a single 20-29 year old is $100,000-150,000.

Average “affordable house” for a couple aged 20-29 years old is $200,000-250,000

Average “affordable house” for a single 30-39 year old is $200,000.

(NOTE: Women are now first marrying later in life. In the early 1960s, 80 percent of women had been married by the time they turned 24. Today, most women have not yet been married at age 24, and it is not until age 32 that 80 percent have been married.)

Again, the average housing cost in the Lehigh Valley is $217,000.

Housing developments in the area that target young professionals have priced themselves out:
  • Riverport Condos, Bethlehem: the low $200,000s to $400,000 making it only “affordable” to households earning $60,000 or more.
  • The Farr Lofts, Allentown: $1,000-1,500 a month to rent making it only “affordable” to households earning $40,000 or more.
  • Estonian Condos, Easton: the high $200,000s and up making it only "affordable" to households earning roughly $75,000 or more.
Clearly there is a disconnect between what yps want and what we can afford.

However, there is some assistance available:

Pennsylvania Housing Financial Agency offers a lower interest mortgage for first-time homebuyers who fit within income and purchase price limits.

For a 30-year fixed mortgage rates are:
KHL 0 pts 6.25%
KHL 1 pt 6.125%

Lehigh and Northampton Counties Limits:
Maximum purchase price - $289,000
Maximum household income
1-2 members - $65,900
3 or more members - $75,700

FHA loans benefit those who would like to purchase a home but haven't been able to put money away for the purchase, like recent college graduates, newlyweds, or people who are still trying to complete their education. FHA home loan - 203(b) finances up to 97 percent of a home loan. It is the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.

Insurance on FHA mortgages are often rolled into the total monthly payment at 0.5 percent of the total loan amount which is roughly half of the price of mortgage insurance on a conventional loan. The maximum amount for an FHA loan in Lehigh and Northampton Counties is $305,666.

Confession from your president

So I have a confession to make. I have a sickness, an obsession really for all things retro. So as you can imagine I was especially saddened to hear that the Sunrise Diner in Jim Thorpe is closed. I frequent Jim Thorpe this time of year, and usually grab a piece of pie at the diner. It's a truly classic, retro gem complete with the chrome highlights and retro colors. It seems the property was bought by adjacent restaurant owners who want to expand their existing business. They are offering the diner up for sale in hopes to save the structure, just at a different location. I hope it finds a new home soon.

Check out the yp candidates in today's Morning Call voter guide

Check out the young professional candidates in today's Morning Call. Regardless of your party affiliation it is important to support candidates that represent our demographic to serve as a young professional voice in our region. NOTE: I designated "young professional" as under 40. NET in no way endorses these candidates as their views are wide and diverse, but it is important to engage these individuals on issues you care about.

Peter Schweyer is running for Allentown City Council. Previous blog post about him.

Jeff Warren is running for Easton City Council. Previous blog post about him.

Peter Melan is running for Easton City Council.

Bill Timmann is running for Easton City Council.

William Reynolds is running for Bethlehem City Council. Previous blog post about him.

Stephen Barron Jr. is running for Northampton County Controller.

Jake Hammond is running for Magisterial District Judge in District 31-2-02 which includes North and South Whitehall.

Daniel Corpora is running for Magisterial District Judge in District 03-2-06 which includes Southside Easton, Glendon, and Williams Township.

Yvonne Falcone is running for Magisterial District Judge in District 03-2-08 which includes Nazareth, Bath, Stockertown, East Allen and Upper Nazareth.

There are a few others running for various municipal and borough councils and area school boards. Please consult the voter guide out today for more details.

Rep. Freeman, Champion for Smart Growth and Urban Revitalization

I had the opportunity to sit down with Rep. Robert Freeman last week. He is the state representative for the Easton area of our region. I found out very quickly that Rep. Freeman is very yp-friendly. His two biggest issues are smart growth and urban revitalization, so he gets it. He serves on the board of Renew Lehigh Valley, and authored the Elm Street bill. The Elm Street program provides funding for areas surrounding downtown main streets for things like facade improvements and greenscaping. We blogged about Bethlehem and Tamaqua taking advantage of this program.

He introduced House Bill 1280, to promote traditional neighborhood development as an alternative to sprawl, was approved unanimously in the House of Representatives and now is sitting in committee in the Senate for review.

“Traditional Neighborhood Development is an excellent alternative to the type of sprawl development that consumes vast amounts of farmland and creates traffic congestion nightmares,” Freeman said. “TNDs are a more compact form of development that use less land, are pedestrian-friendly and provide for a mix of uses and housing options that foster a greater sense of community than conventional suburban developments. A TND creates an actual village or neighborhood rather than a subdivision.”

In the 1999-2000 session of the legislature, Freeman authored the Traditional Neighborhood Development provisions, known as Article VII-A, to the state’s Municipalities Planning Code. Since then, a number of communities pursued the TND alternative, but provisions in the 2000 law proved somewhat cumbersome to implement.

Freeman said H.B. 1280 would make significant changes to the TND provisions to make it easier for municipalities to use as an alternative to sprawl. Under current law, a TND that is in the form of a new development must be in the form of an overlay zone rather than a designation “by right.” The bill would allow municipalities the option of either designating a TND “by right” or to continue to offer the overlay zone approach.

“By allowing municipalities to make an outright TND designation in their zoning codes, it would be a lot easier to create TNDs,” Freeman noted. “Municipalities could ensure that this more compact form of development would be utilized, rather than simply suggesting it to a developer as an alternative. With this added tool in their planning toolbox, local officials would be in a much better position to manage growth more effectively, preserve more open space and reduce people’s dependency on the automobile for everyday needs.”

The bill also would allow municipalities to incorporate a design guideline manual for TNDs as part of their zoning and subdivision and land development ordinances in order to ensure quality design.

Rep. Freeman is just one of many legislators I meeting with in coming weeks. I encourage you to contact me about issues you care about, and more importantly engage local government as I am to help them understand yp issues.

Your president,

Vanessa Williams

Did you know?

If Pennsylvania was a country, it would have the 17th largest economy in the world.

Greenhouse Gas Reduction Act Passes PA House

Yesterday, the Pennsylvania House of Representatives overwhelmingly passed House Bill 110, the Greenhouse Gas Reduction Act, legislation that would create a global warming strategy in Pennsylvania.

Pennsylvania alone contributes one percent of the heat-trapping pollution that causes global warming, more than 105 developing nations combined. We are also third worst in the nation, behind only California and Texas, for production of greenhouse gases.

The bill still needs to pass the Pennsylvania Senate.

Please take a moment to thank (or chide!) your state representative. You can use Penn Future's Action Center to send a quick message or to get the contact information you need to make a quick phone call.